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Augustine Fou- 1 -
Dr. Augustine Fou
http://linkd.in/augustinefou
August 2013
Benchmarking Organic
Search vs Paid Search
Augustine Fou- 2 -
Page 1 Organic Results
Source: Search Engine Watch, August 2012
Brand vs Non-brand CTRs
1
2
3
Brand
90% 68% 61%
1
2
3
Average
1
2
3
Non-brand
Augustine Fou- 3 -
Percent Clicks in Organic vs Paid
75-90% of clicks
13-21% avg CTRs
10-25% of clicks
1-9% avg CTRs
Most users
click on
natural search
results
Natural results
have 10x the
click through
rate of paid ads
Source: go-Digital Blog, July 2012
Augustine Fou- 4 -
94% of clicks go to natural search results
6% of clicks go to paid search results
Paid vs Natural Click Distribution
Source: Search Engine Watch, August 2012
Augustine Fou- 5 -
Page 1 CTR Google vs Bing
Source: Slingshot via Search Engine Watch August 2011
Google Page 1 CTR Curve Bing Page 1 CTR Curve
#1 – 18.2%
#2 – 10.1%
#3 – 7.2%
#1 – 9.7%
#2 – 5.5%
#3 – 2.7%
Augustine Fou- 6 -
Search – Paid vs Organic
http://blog.triphp.com/marketing/organic-vs-ppc-search-engine-marketing.html Feb 2009
• 90% of users click on organic side
• Less than 10% click on paid ads
• Cost per click on SEO is under
$0.10 per click
• CPC on paid side is more than 7x
higher, greater than $0.60 per click
Augustine Fou- 7 -
Marketing Spend is Out of Whack
Source: SEMPO
Clicks from organic search (SEO) account for 90% of all
clicks; yet budgets for SEO only account for 10% of the
search spending.
SEO
89.5%
PPC
10.5%
Distribution of Search Clicks
SEO
10.8%
$1.4B
PPC
88.8%
$11.9B
Distribution of Marketing Spend
Augustine Fou- 8 -
Natural CTR by Industry
Source: Search Engine Watch, August 2012
Airlines 78% 11% 4%
Broadcast 64% 9% 9%
Financial 64% 12% 5%
Online Games 61% 12% 8%
Auto Manuf 60% 19% 6%
Apparel/Beauty 58% 11% 4%
Cellular 56% 15% 7%
Government 55% 15% 10%
Mass Merch 55% 8% 7%
Corporate 53% 12% 8%
Hardware 51% 17% 8%
Current Events 50% 10% 8%
Food/Cooking 46% 17% 9%
Software 44% 20% 8%
Home/Garden 42% 9% 9%
Consumer Electr 39% 9% 8%
Top 3 organic results
Augustine Fou- 9 -
Optimizing Search
Paid/ SEM Organic
$1 - $10 FREE
Shift allocation to get more clicks at lower cost
For long
tail, descriptive
keywords
For brand terms
and expensive
keywords
CPC
1 - 5% 13 - 21%CTR
Source: SlingShot SEO
Augustine Fou- 10 -
So What?
“As users get more savvy in their search
and as advertisers get more savvy and
focused on returns, search investment
should shift from paid search to organic
optimization, which also leads to longer
term payoff.”
- Dr. Augustine Fou
Augustine Fou- 11 -
Related Articles
Organic Search vs Paid Search
By: Augustine Fou, August 2013
Percent of Organic Search from Mobile
By: Augustine Fou, August 2013
Percent of Paid Search from Mobile
By: Augustine Fou, August 2013
Search Ad Effectiveness
By: Augustine Fou, May 2013
Augustine Fou- 11 -
Augustine Fou- 12 -
Dr. Augustine Fou – Chief Digital Strategist
“I advise clients on benchmarking
and then optimizing their digital
marketing activities, with a focus
on search optimization.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou
Slideshares: http://www.slideshare.net/augustinefou
LinkedIn: http://www.linkedin.com/in/augustinefou
Augustine Fou- 13 -
APPENDIX
Augustine Fou- 14 -
Advertisers still overspend
on paid search ads
Source: http://www.torontoseofirm.com/ppc-vs-seo-payoff/ Feb 2010
89% of ad dollars spent on paid
search
89% of clicks come from
SEO/organic search
Augustine Fou- 15 -
Focus on longer search terms
Source: Chitika, Jan 2012Source: Chitika, June 2010
• Users are searching longer terms
• Users click more on ads related to
longer terms
Augustine Fou- 16 -
Users are very savvy
The more
specific the
search (longer
query
length, in # of
words) the
higher the
click through
rate (CTR) on
first search
result.
Source: Just Search, May 2010

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Organic Search vs Paid Search Benchmarks by Dr Augustine Fou

  • 1. Augustine Fou- 1 - Dr. Augustine Fou http://linkd.in/augustinefou August 2013 Benchmarking Organic Search vs Paid Search
  • 2. Augustine Fou- 2 - Page 1 Organic Results Source: Search Engine Watch, August 2012 Brand vs Non-brand CTRs 1 2 3 Brand 90% 68% 61% 1 2 3 Average 1 2 3 Non-brand
  • 3. Augustine Fou- 3 - Percent Clicks in Organic vs Paid 75-90% of clicks 13-21% avg CTRs 10-25% of clicks 1-9% avg CTRs Most users click on natural search results Natural results have 10x the click through rate of paid ads Source: go-Digital Blog, July 2012
  • 4. Augustine Fou- 4 - 94% of clicks go to natural search results 6% of clicks go to paid search results Paid vs Natural Click Distribution Source: Search Engine Watch, August 2012
  • 5. Augustine Fou- 5 - Page 1 CTR Google vs Bing Source: Slingshot via Search Engine Watch August 2011 Google Page 1 CTR Curve Bing Page 1 CTR Curve #1 – 18.2% #2 – 10.1% #3 – 7.2% #1 – 9.7% #2 – 5.5% #3 – 2.7%
  • 6. Augustine Fou- 6 - Search – Paid vs Organic http://blog.triphp.com/marketing/organic-vs-ppc-search-engine-marketing.html Feb 2009 • 90% of users click on organic side • Less than 10% click on paid ads • Cost per click on SEO is under $0.10 per click • CPC on paid side is more than 7x higher, greater than $0.60 per click
  • 7. Augustine Fou- 7 - Marketing Spend is Out of Whack Source: SEMPO Clicks from organic search (SEO) account for 90% of all clicks; yet budgets for SEO only account for 10% of the search spending. SEO 89.5% PPC 10.5% Distribution of Search Clicks SEO 10.8% $1.4B PPC 88.8% $11.9B Distribution of Marketing Spend
  • 8. Augustine Fou- 8 - Natural CTR by Industry Source: Search Engine Watch, August 2012 Airlines 78% 11% 4% Broadcast 64% 9% 9% Financial 64% 12% 5% Online Games 61% 12% 8% Auto Manuf 60% 19% 6% Apparel/Beauty 58% 11% 4% Cellular 56% 15% 7% Government 55% 15% 10% Mass Merch 55% 8% 7% Corporate 53% 12% 8% Hardware 51% 17% 8% Current Events 50% 10% 8% Food/Cooking 46% 17% 9% Software 44% 20% 8% Home/Garden 42% 9% 9% Consumer Electr 39% 9% 8% Top 3 organic results
  • 9. Augustine Fou- 9 - Optimizing Search Paid/ SEM Organic $1 - $10 FREE Shift allocation to get more clicks at lower cost For long tail, descriptive keywords For brand terms and expensive keywords CPC 1 - 5% 13 - 21%CTR Source: SlingShot SEO
  • 10. Augustine Fou- 10 - So What? “As users get more savvy in their search and as advertisers get more savvy and focused on returns, search investment should shift from paid search to organic optimization, which also leads to longer term payoff.” - Dr. Augustine Fou
  • 11. Augustine Fou- 11 - Related Articles Organic Search vs Paid Search By: Augustine Fou, August 2013 Percent of Organic Search from Mobile By: Augustine Fou, August 2013 Percent of Paid Search from Mobile By: Augustine Fou, August 2013 Search Ad Effectiveness By: Augustine Fou, May 2013 Augustine Fou- 11 -
  • 12. Augustine Fou- 12 - Dr. Augustine Fou – Chief Digital Strategist “I advise clients on benchmarking and then optimizing their digital marketing activities, with a focus on search optimization.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefou
  • 13. Augustine Fou- 13 - APPENDIX
  • 14. Augustine Fou- 14 - Advertisers still overspend on paid search ads Source: http://www.torontoseofirm.com/ppc-vs-seo-payoff/ Feb 2010 89% of ad dollars spent on paid search 89% of clicks come from SEO/organic search
  • 15. Augustine Fou- 15 - Focus on longer search terms Source: Chitika, Jan 2012Source: Chitika, June 2010 • Users are searching longer terms • Users click more on ads related to longer terms
  • 16. Augustine Fou- 16 - Users are very savvy The more specific the search (longer query length, in # of words) the higher the click through rate (CTR) on first search result. Source: Just Search, May 2010